Advertising Payments to a Foreign Brand Owner: Can Turkish Customs Add Them to Import Value? (2026 Updated Guide)

Turkish importer pays advertising or marketing fees to a foreign brand owner. Learn when Turkish Customs may question these payments, how customs value is determined, and how importers can defend against additional duties and penalties.

A Turkish importer or distributor may pay substantial amounts to a foreign brand owner for advertising, marketing campaigns, brand promotion, sponsorship, digital advertising, store design or regional promotional activities. During a customs audit, Turkish Customs may examine whether these payments are genuinely independent marketing expenses or whether some part of them should be included in the customs value of imported goods. The answer cannot be determined merely because the payment is described as an “advertising fee” in an agreement or invoice. The contractual relationship, economic substance of the payment, connection with the imported goods and conditions governing the sale must be examined together.

For foreign brand owners and Turkish importers, the distinction can have significant financial consequences. If Customs concludes that an amount should have been included in customs value, additional customs duties, import taxes, interest-related consequences where applicable and administrative penalties may follow. Fırat Fesih Kaya Law Office therefore approaches these disputes by reconstructing the complete commercial relationship rather than examining individual invoices in isolation.

Why Does Turkish Customs Examine Advertising Payments?

Customs valuation generally begins with the transaction value of imported goods, subject to the conditions and legally required adjustments applicable under Turkish customs legislation.

The difficulty arises when the importer makes payments outside the ordinary invoice price.

Customs authorities may investigate whether an apparently separate advertising or marketing payment is actually connected with the imported goods in a manner affecting customs value.

Are All Advertising Payments Added to Customs Value?

No. The existence of an advertising payment does not by itself mean that it must automatically be added to customs value.

The legal character and commercial substance of the payment must be determined.

A genuine local advertising expense undertaken by the Turkish importer for its own account can present a materially different valuation question from a payment that is effectively part of the consideration required for obtaining the imported products.

The Contract Name Is Not Decisive

Calling an agreement a “Marketing Services Agreement,” “Advertising Contribution Agreement” or “Brand Promotion Agreement” does not conclusively determine its customs treatment.

Customs may examine what the parties actually do under the agreement.

The same principle works in the importer’s favor: a broadly drafted brand agreement does not necessarily mean that every payment made under it belongs in customs value.

Is the Payment a Condition of Sale?

One of the central questions is whether the relevant payment is sufficiently connected with the sale of the imported goods.

The importer should examine whether it could purchase the goods without making the disputed advertising payment.

If refusal to pay would cause the foreign supplier or brand owner to stop supplying the goods, Customs may scrutinize the arrangement more closely.

Who Receives the Advertising Payment?

The identity of the recipient is important.

The payment may be made directly to the manufacturer, a foreign brand owner, a parent company, an affiliated marketing company or an unrelated advertising agency.

Payments to an unrelated advertising agency for genuine services can present a different factual situation from mandatory payments to the seller or a company connected with the seller.

Foreign Brand Owner and Foreign Seller May Be Different Companies

Many international distribution structures involve several group companies. One company owns the trademark, another manufactures the goods and another sells them to the Turkish distributor.

The importer should map the relationships among all these entities.

Customs may examine whether a payment to the brand owner ultimately benefits the seller or forms part of the broader conditions governing the imported goods.

Advertising Fees Must Be Distinguished From Royalties

A particularly important issue is whether an amount described as advertising expenditure is actually, wholly or partly, a royalty or licence payment.

Trademark royalties and other intellectual-property payments raise specific customs-valuation questions.

The company should therefore determine whether the payment purchases advertising services, trademark rights, distribution rights, market access or a combination of several benefits.

Mixed Agreements Create Greater Risk

A single agreement may contain trademark licensing, advertising obligations, promotional contributions, management services and distribution rights.

Using one percentage of turnover to compensate the foreign group for all these rights and services can make customs analysis significantly more difficult.

Where possible, the commercial basis of each component should be identifiable and supported by genuine records.

Percentage-of-Sales Advertising Contributions

International brands sometimes require distributors to contribute a percentage of net sales to global or regional advertising.

The percentage structure alone does not determine customs treatment.

The company should establish what services or activities are funded, who controls the budget, how the amount is calculated and whether the obligation is connected with the right to purchase imported products.

Mandatory Marketing Expenditure Can Raise Questions

A distribution agreement may require the Turkish distributor to spend a minimum percentage of annual revenue on advertising.

This does not automatically mean that the amount belongs in customs value.

However, Customs may investigate the commercial relationship, particularly if the brand owner controls the expenditure or the obligation is linked closely with continued supply.

Local Advertising Conducted by the Importer

Suppose the Turkish importer independently purchases television advertisements, social-media campaigns, billboards, influencer services or retail promotions from Turkish providers.

Where those activities are genuinely undertaken by the importer for its own account, the customs valuation analysis can differ substantially from direct payments made to the foreign seller.

Documentation should demonstrate this independence.

Global Advertising Campaigns

A foreign brand owner may organize a global campaign and allocate part of the cost to its Turkish distributor.

The importer should identify what was actually received in exchange.

Relevant evidence may include campaign plans, advertising materials, territorial allocations, media invoices and cost-allocation calculations.

Advertising Payments Made Before Importation

Timing alone does not determine whether a payment is dutiable.

A payment made before shipment may still be independent of the imported goods, while a payment made months after customs clearance may potentially be examined if it relates to the imported products and satisfies the applicable valuation criteria.

Economic substance matters more than invoice timing alone.

Post-Import Payments Can Trigger Customs Audits

Customs authorities conducting post-clearance controls may compare customs declarations with accounting records and international payments.

A recurring transfer to the foreign brand owner that does not appear in customs valuation records may trigger questions.

The importer should therefore be capable of explaining every material category of foreign payment.

Review the Distribution Agreement

The distribution agreement should be examined together with the purchase contract.

Important provisions can include exclusivity, minimum purchases, trademark use, advertising obligations, marketing contributions, termination rights, sales targets and conditions for continued supply.

Reading only the advertising clause may produce an incomplete picture.

Review the Trademark Licence

If a separate trademark licence exists, determine whether the Turkish importer pays for the right to use the trademark independently of the purchase of goods.

The relationship between the licence and supply agreements can become central to the customs analysis.

Review Side Letters and Amendments

Customs disputes are sometimes complicated by side letters that change the economic arrangement without modifying the principal contract.

Collect all amendments, annexes, pricing schedules and correspondence relevant to the payment.

Invoices Should Describe Actual Services

Generic invoices stating only “marketing fee” or “brand contribution” can create evidentiary difficulties.

The importer should preserve supporting documentation showing the actual advertising activities, calculation methodology and contractual basis.

Evidence of Real Advertising Services Is Important

Useful evidence can include campaign reports, media plans, advertisements, digital campaign records, event documentation, agency invoices, marketing calendars and evidence showing where the advertising occurred.

The objective is to demonstrate the economic reality behind the payment.

Advertising Benefiting Imported Goods Is Not Automatically Enough

Advertising will naturally increase awareness and potentially sales of imported branded products.

That commercial benefit alone should not automatically resolve the customs-value question.

The legal analysis should focus on the applicable valuation criteria and the actual relationship between the payment and the sale of the imported goods.

Related-Party Transactions Require Additional Care

Where the Turkish importer and foreign brand owner belong to the same corporate group, Customs may scrutinize the arrangement more closely.

The company should maintain clear agreements, allocation methodologies and evidence supporting the commercial substance of each payment.

Transfer Pricing and Customs Valuation Are Different

A payment may be accepted for corporate-income-tax transfer-pricing purposes without necessarily determining its customs treatment.

Likewise, a customs valuation conclusion does not automatically resolve every transfer-pricing question.

Multinational groups should coordinate the two analyses while respecting their different legal frameworks.

Advertising Payments and Transfer Pricing Adjustments

Year-end adjustments can create additional complexity where the Turkish distributor’s profitability is adjusted through marketing contributions or other intercompany payments.

The importer should determine whether such adjustments relate to imported goods and whether they affect previously declared customs values.

Customs May Examine Historical Payments

A post-clearance audit may cover numerous declarations and accounting periods.

If Customs considers the same advertising-payment structure relevant to customs value across several years, the financial exposure can become substantial.

The importer should therefore create a declaration-by-declaration analysis rather than multiplying one estimated amount across all imports.

Allocate Payments Carefully

If only part of a payment arguably relates to imported goods, the allocation methodology can become critical.

The company should avoid arbitrary percentages.

Any allocation should be supported by contracts, accounting records and commercially reasonable methodology.

Avoid Double Counting

Where an amount has already been reflected in the invoice price or another customs-value adjustment, the importer should verify that Customs does not effectively count the same economic element twice.

A complete reconciliation of invoice price and adjustments can reveal this problem.

Obtain the Customs Calculation

If Customs proposes additional duties, request and review the calculation carefully.

Determine which payments were included, which declarations were affected, what allocation method was used and which tax components were recalculated.

Customs Duty Is Only Part of the Exposure

An increase in customs value may affect more than ordinary customs duty.

Depending on the product and import regime, other import taxes or financial liabilities calculated using customs value may also be affected.

Each component should be checked independently.

Administrative Penalties Require Separate Analysis

A conclusion that customs value was understated does not mean that every proposed penalty is automatically correct.

The legal basis, calculation and factual circumstances of any penalty should be examined separately from the underlying additional customs assessment.

Was the Importer Acting on a Reasonable Interpretation?

Where the company treated payments as independent advertising expenditure based on contracts, accounting practice and professional analysis, preserve that evidence.

It can be important when challenging allegations concerning the nature of the declaration and any associated penalty.

Customs Broker Responsibility May Be Relevant

Determine what information was provided to the customs broker.

A broker cannot assess a foreign advertising agreement that was never disclosed. Conversely, if the broker received complete information and advised on the valuation treatment, preserve that correspondence.

Foreign Brand Owner Cooperation Is Essential

The Turkish importer may need documents controlled by the foreign brand owner.

The foreign company should provide agreements, service descriptions, campaign evidence, calculation methodologies and other records necessary to explain the payment.

What If Customs Issues an Additional Assessment?

The importer should obtain the formal decision, identify the notification date and immediately determine the applicable customs objection procedure.

Technical discussions with auditors should not cause the company to miss a statutory challenge period.

Customs Objection Under Turkish Law

Depending on the nature of the customs decision, the objection mechanism under Turkish customs legislation may provide the administrative route for challenging additional duties and associated decisions.

The company should prepare both legal and accounting arguments rather than submitting a short objection stating only that the payments were advertising expenses.

What Should the Objection File Contain?

A strong file can include the purchase agreement, distribution agreement, trademark licence, advertising agreement, invoices, payment records, accounting treatment, campaign evidence, corporate structure and a detailed explanation of why the payment should or should not affect customs value.

The evidence should tell one coherent commercial story.

Judicial Review May Follow

If the administrative objection is rejected, available judicial remedies should be evaluated promptly.

By that stage, the company should already have a complete evidentiary file rather than beginning document collection after the dispute reaches court.

Can Previously Paid Duties Be Recovered?

If the company previously included amounts in customs value that were not legally required to be included, the possibility of repayment may also deserve examination, subject to the applicable customs repayment framework and time limits.

Customs valuation review can therefore identify both additional exposure and potential overpayments.

Review Future Imports Immediately

Once Customs questions the arrangement, the company should determine how ongoing declarations will be handled.

Continuing the same treatment without evaluating the new dispute can multiply financial exposure.

Do Not Change Contracts Artificially

Companies should not rewrite contracts solely to create a misleading customs result.

Future agreements should accurately reflect the parties’ real commercial relationship.

Consider Separating Commercial Functions Clearly

Where the business model genuinely contains separate supply, trademark and advertising arrangements, contracts and accounting records should make those functions understandable.

Clear documentation can significantly reduce future uncertainty.

Create an Intercompany Payment Map

Multinational importers should maintain a schedule of every payment made to foreign related parties, including royalties, advertising fees, management fees, commissions, technical-service payments and year-end adjustments.

Each category should be assessed separately for customs purposes.

Immediate Defense Strategy

When Turkish Customs seeks to add advertising payments to customs value, the importer should immediately identify the exact payments under review, obtain all supply and brand agreements, determine who received the money, examine whether the payment was connected with obtaining the imported goods, distinguish advertising from royalties and other payments, collect evidence of actual marketing services, reconcile payments with customs declarations, review historical exposure and protect all administrative objection deadlines.

Frequently Asked Questions

Are advertising payments automatically included in customs value in Turkey?

No. The legal and economic nature of the payment must be examined under the applicable customs valuation rules.

Does paying the foreign brand owner automatically make the advertising fee dutiable?

No. The recipient’s identity is important but is not by itself determinative. The relationship between the payment and imported goods must be analyzed.

What if the importer pays a Turkish advertising agency?

Genuine advertising undertaken by the importer for its own account can present a materially different valuation issue from mandatory payments to the foreign seller or brand owner.

Can Customs treat an advertising fee as a royalty?

Customs may examine whether the payment’s actual substance involves trademark or other intellectual-property rights. The contract label is not necessarily decisive.

Are percentage-of-sales marketing fees automatically included?

No. The percentage calculation alone does not resolve the customs question. The underlying obligation and commercial substance must be examined.

Can Customs investigate advertising payments years after importation?

Post-clearance controls can examine historical declarations within the applicable legal framework. Companies should therefore preserve relevant contracts and accounting records.

Can Customs impose both additional duty and a penalty?

Potentially, depending on the circumstances. The underlying customs debt and any administrative penalty should be analyzed separately.

Can the foreign brand owner help defend the Turkish importer?

Yes. Evidence concerning actual advertising services, cost allocation, corporate relationships and contractual obligations may be controlled by the foreign brand owner and can be critical.

What if only part of the payment relates to imported goods?

The possibility and methodology of allocation should be analyzed carefully. Any allocation should be supported by reliable commercial and accounting evidence.

What is the most important issue in these disputes?

The decisive question is not whether an invoice says “advertising.” The complete commercial arrangement must be examined to determine what the importer actually paid for, to whom it paid the amount and whether the payment is legally connected with the sale and customs value of the imported goods.

Client-Focused Legal Support for Customs Valuation Disputes

Disputes concerning advertising payments can expand into customs valuation assessments, royalty disputes, related-party investigations, post-clearance audits, additional import taxes and administrative penalties. Fırat Fesih Kaya Law Office assists foreign brand owners, multinational companies and Turkish importers in analyzing whether advertising, marketing, royalty and other intercompany payments affect customs value. Lawyer Fırat Fesih Kaya provides legal assistance in reviewing commercial agreements, preparing customs objections, coordinating accounting and contractual evidence and challenging additional customs assessments and penalties.

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+90 312 434 22 22

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+90 532 769 22 22

Email:
info@firatfesihkaya.av.tr

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